This
report presents a review of the policy measures pertaining to energy generation
from bagasse in Mauritius that have led to the implementation of a number of
projects on firm power (using bagasse during the crop season and coal during the
intercrop season) generation as well as continuous power (using bagasse during
the crop season only) generation.The
policy measures include:

Income tax exemption on revenue derived from sale of power, and capital
allowances in such investment.

Raising of tax-free debentures.

Centralisation of cane milling activities spelling out the guidelines for
mills.

Bagasse energy pricing.

In
response to these incentives and policies, the sugar industry has implemented a
number of measures to efficiently use energy in sugar cane processing. Such
measures include the enhancement of the calorific value of bagasse, reduction in
power consumption in the prime movers of sugar manufacturing equipment,
reduction in process heat consumption in juice heating and evaporation, adoption
of continuous processes, factory computerisation and process automation.

The
quantity of electricity exported by factory-located power plants rose from 70
GWh in 1988 to 225 GWh in 1998 when 7 continuous and 2 firm power plants were in
operation.The figure was expected to reach 360 GWh (or 62 kWh/tonne
cane) with the commissioning of one 2x35 MW additional power plant.The bagasse energy projects in Mauritius would then avoid the use of
215,000 tonnes of coal, the emission of 650,000 tonnes of CO2 and the
generation of 35,000 tonnes of coal ash.

Implementation
of cogeneration projects in Mauritius has enabled the country to diversify its
energy base, rehabilitate, modernise and centralise cane milling activities,
save on the fossil fuel import and, reduce the emission of greenhouse gases,
mainly CO2.Mauritius is
now in a position to share its experience with other cane sugar producing
countries where replication or adaptation of such energy projects could be
considered for implementation.A
training programme sponsored by USAID/Winrock has already been organised for a
team of sugar engineers and technologists from India at the initiative of the
Mauritius Sugar Authority in collaboration with the Robert Antoine Sugar
Industry Training Centre in Mauritius.

The
potential of replication of such projects in the Eastern and Southern African
Region on the basis of the Mauritian experience has been examined.It has been estimated that the 16 million tonnes of bagasse generated
annually in this region has the potential of generating about 5,500 GWh of
electricity on the basis of the latest state-of-the art technology.

In
order to embark on such projects, the policy of the governments in the region on
renewable energy has to be clearly defined to enable both the sugar industry and
public utility companies to negotiate power purchase agreements.This will serve as the basis of initiating power plant projects.It has been highlighted that each option chosen would require investments
which may range from US$5 to 100 million, the latter investment sum being for
the highest degree of sophistication.Similarly,
the manpower requirement will vary with the option chosen.

Electrical
energy from bagasse is a commercially proven technology and its exploitation by
sugarcane producing countries allows them to substitute a readily available
renewable biomass for imported fossil fuel.This results in economic benefits to the country, financial benefits to
the sugar industry and positive environmental benefits in terms of reduced
greenhouse gas emissions.

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